Multibagger stock zooms over 14%, hits 52-week high. Here's why

economictimes.indiatimes.com:

SJVN zoomed over 14% to hit a new 52-week high of Rs 57.2 in Monday's trade on BSE after the firm bagged a contract from Punjab State Power Corporation (PSPCL) for the development and procurement of 1,200 MW of solar power entailing an investment of Rs 7,000 crore. «SJVN Green Energy Limited has received the Letter of Intent (LoI) from Punjab State Power Corporation Limited (PSPCL) for procurement of 1200 MW Solar Power. SGEL will develop a 1000 MW project anywhere in the country and balance 200 MW in the state of Punjab as per the RFS provisions,» the company said in an exchange filing.

The projects are expected to generate 2,997 MUs in the 1st year and the cumulative energy generation over a period of 25 years would be about 69,661 MUs. As per RfS the project shall be commissioned in 18 months from the date of signing of the PPA and expected to be commissioned by December 2024. The state-owned firm also inked an initial pact with REC for securing finance of Rs 50,000 crore for projects of its subsidiaries and joint ventures.

REC will provide financial assistance to set up new power generating stations based on conventional and renewable sources of energy, according to a statement on Friday. Besides, REC will assist financially in setting up new technology projects like battery storage, e-vehicles, green hydrogen/ammonia, hydrogen cell storage, and manufacturing units for green projects. The MoU covers the construction of evacuation and transmission projects and includes the strengthening/improvement of an existing transmission system.